VIRGINIA BEACH, Va. (WAVY) — After speaking with small business owners in Hampton Roads, a Virginia Beach congresswoman has submitted recommendations for “legislative fixes” that would benefit small businesses applying for loans and grants through the Paycheck Protection Program.
RELATED: ‘It’s not frustrating, it’s scary’: Local business owner needs SBA loan money to survive
Congresswoman Elaine Luria submitted her recommendations to the House Committee on Small Business last week. She said that 115,192 people work at small businesses in Virginia’s 2nd District, which totals more than half of all employees in the area, according to a press release.
Small businesses are able to apply for economic relief during the coronavirus pandemic via PPP loans and grants through the Small Business Administration; however, not all small businesses are able to easily receive the funding.
“Despite Congressional intent, some businesses cannot benefit from the Paycheck Protection Program,” Luria said. “SBA must clarify its affiliation rules as they relate to PPP loans.”
Luria made the following recommendations to Congress:
- Allow the SBA to base loan eligibility on revenues from the same time in 2019 instead of the last four months for seasonal businesses
- Allow businesses to defer the start of the 8-week period when loan proceeds can be forgiven until their businesses reopen
- Provide incentives for banks to serve new customers
- Prohibit banks from restricting which businesses can apply for PPP loans
- Allow businesses who provide lower payroll costs to use more of their SBA loan for other operational costs
- Require the SBA to provide clear timelines for when loan and grant applications will be processed
